CMS unveiled a Feb. 9 proposal to reshape the federal health insurance marketplace, with proposed changes aimed at cutting healthcare costs, promoting competition and improving program integrity, according to the agency.
HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz, MD, introduced the Notice of Benefit and Payment Parameters for 2027, which would bring flexibility to plan design, according to a Feb. 9 news release shared with Becker’s.
“This proposal puts patients, taxpayers and states first by lowering costs and reinforcing accountability for taxpayer dollars,” Dr. Oz said in the release. “We are cracking down on improper and misleading practices while giving states and health plans more room to innovate and compete. The goal is simple: lower costs, more choice and exchanges that work as intended.”
If finalized, insurers could offer “catastrophic plans” that last up to 10 years, develop low-deductible options with higher out-of-pocket maximums and design non-network plans with demonstrated provider choice.
CMS also proposed repealing standardized plan options that would allow for low-deductible plans with higher out-of-pocket maximums to design coverage that responds to market demand. More consumers ages 30 and older across all states would secure access to catastrophic plans through expanded hardship exemptions.
The agency proposed stricter income verification and improved oversight of insurance agents and brokers to keep out improper enrollments and unauthorized plan changes. The rules would also update exchange policies to reflect legal requirements limiting premium tax credits and cost-sharing reductions to individuals who meet immigration eligibility standards
Additional provisions targeted cost control by restoring what CMS called “fiscal discipline” around essential health benefits and modernizing network adequacy reviews to reduce duplicative oversight.
They also aim to address cost drivers in health insurance markets while tightening controls on taxpayer-funded subsidies. Public comments on the proposed rules are due March 11, 2026.
“At President Trump’s direction, HHS is driving down costs and rooting out fraud across our health insurance programs,” Mr. Kennedy said in the release. “This proposed rule lowers premiums, expands consumer choice, cracks down on fraud and promotes innovative coverage that prioritizes prevention and long-term health.”
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